MUMBAI: B2B edtech platform Toddle has launched a managed fundraising process to raise $50-100 million through a mix of primary and secondary transactions, according to four people familiar with the matter.
The planned round, if completed, would rank among the largest fundraises in India's education technology sector outside of Physics Wallah and signal renewed investor interest in a segment that has endured a prolonged funding drought.
The Bengaluru-based company has hired US investment bank Brown Gibbons Lang & Company (BGL) to run the process and has begun reaching out to investors, particularly in the US, the people said.
“The company has been reaching out to investors independently for about a year but has last month started a managed process with BGL,” one of the people cited above said.
Queries sent to Toddle and BGL remained unanswered till press time.
The fundraising reflects a broader shift in investor preferences towards software providers serving schools rather than direct-to-consumer edtech businesses. Investors are increasingly betting that growing private equity investment in school chains will drive spending on digital curriculum, assessment and parent-engagement tools.
Founded in 2019 by Deepanshu Arora, Parita Parekh, Misbah Jafary, Gautam Arora, and Nikhil Poonawala, Toddle provides curriculum planning, classroom management, assessment and communication software to K-12 schools globally. The company has established a strong presence among schools following the International Baccalaureate (IB) curriculum.
Toddle has increasingly focused on overseas markets, with more than a third of its revenue now coming from the US and a significant share of the remainder generated from other international geographies, according to the people cited above.
“It has seen a tough period being at the intersection of SaaS and edtech, both of which saw negative sentiment for a while. But its ARR and profitability metrics have improved significantly,” this first person added.
“While its early stages in the fundraise, the company is betting on a near-breakeven status and annual recurring revenue (ARR) of around $25 million,” a second person said.
The company's financial performance has strengthened in recent years. Revenue from operations rose nearly 60% year-on-year to ₹114.4 crore in FY25 from ₹71.4 crore in FY24, according to financial data reviewed by Mint. Losses narrowed to ₹42.2 crore from ₹61.4 crore a year earlier.
Toddle was last valued at about $136 million after raising $17 million in a Series A round in January 2023 led by Peak XV Partners, then known as Sequoia Capital India. Trifecta Capital, Matrix Partners India, Better Capital, Beenext and Tenacity Ventures also participated.
In January 2023, venture capital firm 3one4 Capital exited its early investment in Toddle, generating a 6.6x return on its seed investment, according to reports.
The fundraising comes as India's edtech sector shows early signs of recovery. Mint reported earlier this month that startups in the sector raised $178 million in the first half of 2026, exceeding the $155 million raised during all of 2025, according to Tracxn data.
Even so, investors remain selective, favouring businesses with recurring subscription revenue, strong customer retention and a clear path to profitability over consumer-focused education models that dominated the previous funding cycle, Mint reported.